{"id":28115,"date":"2020-05-19T09:35:16","date_gmt":"2020-05-19T07:35:16","guid":{"rendered":"https:\/\/www.gruppoigd.it\/?p=28115"},"modified":"2020-06-24T16:12:24","modified_gmt":"2020-06-24T14:12:24","slug":"ffo-stable-in-first-quarter-2020-despite-the-impact-of-the-covid-19-crisis","status":"publish","type":"post","link":"https:\/\/www.gruppoigd.it\/en\/ffo-stable-in-first-quarter-2020-despite-the-impact-of-the-covid-19-crisis\/","title":{"rendered":"FFO stable in first quarter 2020, despite the impact of the COVID-19 crisis"},"content":{"rendered":"<ul>\n<li><strong>Funds from Operations (FFO) amounted to \u20ac20.8 million in first quarter 2020, +0.1% higher than in first quarter 2019.<\/strong><\/li>\n<li><strong>Rental income came to \u20ac38.4 million, a slight drop (-0.9% vs 3M2019), due primarily to lower variable revenue and temporary rents in the Italian malls in March.<\/strong><\/li>\n<li><strong>In an uncertain environment, in order to support financial stability, the BoD proposes payment of a dividend for 2019 of 22.8 euro cents per share, lower than the 50 euro cents proposed originally.<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4>The results for the first three months of 2020 were impacted by the health crisis triggered by the spread of Covid-19. The exceptional containment measures adopted in Italy as of the end of February to limit the spread of Covid-19 resulted in restrictions on the days and hours of operation for shopping centers and the types of retailers allowed to remain open.<\/h4>\n<p>Despite the difficult conditions, IGD\u2019s performance remained solid as shown by the FFO which amounted to \u20ac20.8 million, largely unchanged with respect to the same period of 2019 (+0.1%). This performance reflects the positive trend in financial management (+\u20ac0.8 million adjusted), which made it possible to offset the negative performance of the adjusted core business EBITDA (-\u20ac0.7 million). Taxes were unchanged.<\/p>\n<p><strong>The FFO guidance disclosed previously, which called for growth of 2% in 2020, was withdrawn until a clearer picture as to the evolution of the virus and the relative impact on the Company\u2019s business is available.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>The uniqueness of the Italian portfolio \u2013 comprising shopping centers with strong food anchors and dominant in their relative catchment areas &#8211; ensured that all IGD\u2019s shopping centers remained open, providing essential goods and services, despite the restrictions put into place by the government throughout the country.<\/p>\n<p>The average <strong>Financial Occupancy<\/strong> in Italy remained high in the quarter, coming in at <strong>96.18%<\/strong>. The strong restrictions introduced to limit contagion did, however, impact the performance, causing <strong>rental income<\/strong> to fall 0.9% to <strong>\u20ac38.4 million<\/strong>.<\/p>\n<p><strong>Like-for-like revenue fell by 0.4% overall<\/strong>, due entirely to the performance of the Italian portfolio (-0.7%). In Romania, where IGD benefitted from a significant upside (+1.75%) on rents in new leases and the fact that the restrictions took effect solely in the last week of March, like-for-like rental income rose 3.5% in the quarter.<\/p>\n<p>Not insignificant is the fact that approximately 85% of the turnover recorded in Italy in first quarter 2020 has already been collected, while in Romania practically 100% of the turnover was collected in the quarter.<\/p>\n<p><strong>Net rental income<\/strong> amounted to \u20ac33.0 million, down 3.3% due to, in addition to lower revenue, higher provisions for doubtful accounts and condominium fees.<\/p>\n<p>The <strong>Group\u2019s core business EBITDA<\/strong> fell 2.8% to \u20ac30.3 million due mainly to the drop in rental income. Net services income and general expenses, which saw a slight drop in personnel expense, headquarter and corporate management costs, as well as consultancies, were stable. The <strong>EBITDA Margin<\/strong> came to 75.8% (vs 77.3% in the first quarter of 2019).<\/p>\n<p><strong>Financial charges amounted to \u20ac9 million<\/strong> (compared to \u20ac8.1 million in first quarter 2019). Adjusted for negative carry, IFRS16 and non-recurring costs, the balance is 10.8% lower than in first quarter 2019.<\/p>\n<p>The <strong>net financial debt was \u20ac1,153.2 million<\/strong> at 31.03.2020 (\u20ac1,097.3 million including the impact of IFRS16), while the <strong>loan-to-value came to 47.2%<\/strong> (vs 47.6% at year-end 2019), remaining firmly below the threshold of 50%. The <strong>average cost of debt<\/strong> showed further improvement, going from the 2.35% recorded at year-end 2019 to 2.30% at the end of March 2020.<\/p>\n<p>Considering the uncertainty that the Covid-19 health crisis has caused for the economic scenario in Italy, the Board of Directors found that the preservation of the Company\u2019s financial stability should be a priority and proposed to distribute 70% of the net profit generated by the property rental business, namely the minimum required to maintain REIT or SIIQ status.<\/p>\n<p>At the <strong>next Shareholders\u2019 Meeting to be held on 11 June 2020<\/strong> shareholders will, therefore, be asked to approve payment of a <strong>dividend of \u20ac0.228152 euro per share<\/strong> for 2019, less than the \u20ac0.50 proposed originally by the BoD on 27 February 2020: a decision which, if approved by the shareholders, will allow IGD to reduce cash outflows by approximately \u20ac30 million.<\/p>\n<p>&nbsp;<\/p>\n<h4>DIVIDEND<\/h4>\n<p><a href=\"https:\/\/www.gruppoigd.it\/en\/2020-dividend-payment\/\">Payable as from 22 July 2020<\/a><\/p>\n<p>Record date: 21 July 2020<\/p>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Core business EBITDA<\/strong><\/td>\n<td>\u00a0\u20ac 30.3 mn<\/td>\n<td>-2.8%<\/td>\n<\/tr>\n<tr>\n<td><strong>Core business EBITDA margin<br \/>\n<\/strong><\/td>\n<td>\u00a075.8%<\/td>\n<td>-150 bps<\/td>\n<\/tr>\n<tr>\n<td><strong>Funds From Operations (FFO)<\/strong><\/td>\n<td>\u00a0\u20ac 20.8 mn<\/td>\n<td>+0.1%<\/td>\n<\/tr>\n<tr>\n<td><strong>Loan-to-Value<\/strong><\/td>\n<td>\u00a047.2%<\/td>\n<td>&lt; max. level of 50%<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>Net Rental Income adj.<\/strong><\/th>\n<th scope=\"row\">\u00a0\u20ac 33.0 mn<\/th>\n<th scope=\"row\">-3.3%<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Despite the difficult conditions, IGD\u2019s performance remained solid as shown by the FFO which amounted to \u20ac20.8 million, largely unchanged with respect to the same period of 2019 (+0.1%).<\/p>\n","protected":false},"author":5,"featured_media":28134,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[212],"tags":[221,88],"class_list":["post-28115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-igds-results","tag-business-en","tag-risultati-economico-finanziari-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts\/28115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/comments?post=28115"}],"version-history":[{"count":5,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts\/28115\/revisions"}],"predecessor-version":[{"id":28733,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/posts\/28115\/revisions\/28733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/media\/28134"}],"wp:attachment":[{"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/media?parent=28115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/categories?post=28115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gruppoigd.it\/en\/wp-json\/wp\/v2\/tags?post=28115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}